June 15, 2012
--- Only half the clients of advisers surveyed have realistic
expectations about the amount of income their investments will provide in
retirement, Russell Investments found. ---
In its quarterly Financial Performance Outlook survey, Russell
Investments ventured into new areas. A number of results were about retirement income planning.
Advisers do not see their clients as focusing on the right
retirement goals. They reported that only 54% of their clients have realistic
expectations about the amount of income their investments will provide them in
three-quarters (72% of the advisers surveyed said that retirement income
planning is either a large or core part of their practice, with another 23%
indicating it to be a small but regular component.
advisers are also dedicating time to learning more about retirement income
planning and strategies—more than 98% of respondents said they are trying to
build expertise in retirement income planning. However, advisers also indicated
there is no consensus on the right resources to consult. Respondents reported
they are turning to a variety of sources, including online material and books
(68%), industry peers (52%), fund companies (49%) and accredited courses (45%).
reported that in order to help clients achieve retirement income goals, they
often or always recommend a diversified portfolio of mutual funds (75%), dividend-paying equity funds (64%) or bond funds (51%).
Immediate annuities and fixed annuities were among the least popular options,
with 61% and 64% respectively saying they rarely or never recommend them for
retirement income planning